ASSOCIATED STUDENTS UCLA
BOARD OF DIRECTORS
Regular Meeting
August 27, 2010
12:00 p.m.
Kerckhoff Hall Staterooms
PRESENT:
Christian Alfaro, Karleen Giannitrapani, Sandi Gillespie (Recorder), Abdallah
Jadallah, Mike Jedlicka, Dave Lowenstein, Amy Liu, Hironao Okahana, Mark
Reyes, Mikaela Saelua, Mike Soderberg, Michael Weismeyer, Dorothy Wiley,
and Bob Williams
ABSENT:
Pam Viele
GUESTS:
Guy Adams, UCLA Health Sciences Store General Manager
Andrew Alexah, UCLA Academic Planning and Budget
Sally Amato Rogers, ASUCLA Director Human Resources/Payroll
Gerald Bailey, UCLA Store Distribution Center Division Manager
Donna Baker, ASUCLA Director of Financial Planning/Treasury
Cindy Bolton, ASUCLA Director of Food Operations
Robin Broudy-Johns, Store Operations Director
Roy Champawat, Student Union/Student Support Services Director
Scott Chapman, UCLA Store Bookzone Buyer/Manager
Anne Collum, UCLA Store Textbook Division Manager
Judy Dattels, ASUCLA General Ledger Accounting Manager
Lee Gladdin, UCLA Store Bearwear Buyer
Kelly Goodman, UCLA Store Campus Outreach Manager
Jan Griwach-Ronci, UCLA Store General Manager/Director of
Computers/Supply Division & Hilltop Shop
Patrick Healey, UCLA Store General Manager/Director,
Apparel/Accessories/LuValle Commons/Health Sciences Store
Cindy Holmes, ASUCLA Director, UCLA Trademarks and Licensing
Ric Johnson, ASUCLA Computing & Communications Director
Raymond Juarez, ASUCLA Student Union Operations Division Manager
Raidis Maypa, ASUCLA Central Food Service Division Manager
Kamran Mehdian, ASUCLA Information Services Director
John Mrwik, ASUCLA Food Operation Assistant Director
Karen Noh, Director, Special Projects
Carol Bluee-Walker, UCLA Store Merchant Systems Manager
Neil Yamaguchi,UCLA Store General Manager/Director Academic Support
Approved: September 24, 2010
Approved: September 24, 2010
CALL TO ORDER
Mr. Jadallah called the meeting to order at 12:03 p.m.
APPROVAL OF AGENDA
Mr. Jadallah called for consent to approve the Associated Students UCLA Board of Directors August 27,
2010, Regular Meeting Agenda. There being no objections, the motion was approved by unanimous
consent
APPROVAL OF MINUTES
Mr. Jadallah called for consent to approve the Associated Students UCLA Board of Directors July 30,
2010, Regular Meeting Minutes. There being no objections, the motion was approved by unanimous
consent
.
EXECUTIVE DIRECTOR’S REPORT
Mr. Williams offered the Executive Director’s Report to the Board.
A. Financial/Operational Items
1. July
July financial results show a shortfall in sales compared to the aggressive budget, but show a
strong sales increase over last July. Overall, the Association sales show a positive variance of
10.5% compared to last July. Summer traffic has been up compared to last year with additional
groups and events on campus.
The Store continued to miss its sales plan for July but this is not a good indicator of the trend.
Sales in the Store were actually 12.6% higher than last year’s July results and are tracking ahead
of estimated actual targets developed during this year’s budget process. The Store contribution for
the month was off plan by $27,000, but was much stronger than last year with a positive variance
over July 2009 of $116,000.
The Apparel area was short of its contribution plan, but well ahead of last year. The Supply
Division saw similar results missing the budget but exceeding last year’s totals. The Computer
Store results showed the largest negativity to budget, but also were ahead of last year’s results for
the month. The Textbook area exceeded its monthly contribution targets and also saw stronger
results than last year. The LuValle Store was very close to plan while the Health Science Store
exceeded its contribution targets by $8,651.
Food Service continued its trend of the past few months of missing its budgeted sales plan but
showing strong positive results in contribution. For the month, Food Service exceeded its
contribution target by $34,000 due to very strong cost control. Several areas exceeded their plans
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Board of Directors
Minutes of the August 27, 2010, Regular Meeting
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Approved: September 24, 2010
including the Greenhouse, Northern Lights, the Bombshelter (Food Trucks), LuValle Commons,
the Cooperage, Taco Bell, Commissary, and Catering.
The Services Division saw the greatest shortfall compared to plan for the month primarily due to a
shortfall in International Licensing which is primarily a timing issue. Year end results are on plan.
The Student Union Division had a good month with added event income and a solid month from
the Post Office. A & SS continued its positive result from wage and cost savings. The area only
shows a negative for the month as the result of an accrual to account for the estimated incentive
compensation awards costs.
The Association continues to see strong results in the Maintenance Division and received a rebate
in Utilities that led to a positive variance. Overall for the month, net-income results would have
exceeded plan by over $200,000 and last year by over $382,000 but have been adjusted down to
account for incentive compensation awards resulting in July showing an adjusted negative
variance in net income of $52,000.
Mr. Williams introduced various ASUCLA career employees who were in attendance. Mr.
Williams thanked the employees for their dedication and commitment during these difficult
economic times. The Association had an amazing performance in 2009-2010 and Mr. Williams
credited all the employee’s hard work and perseverance for the remarkable turnaround.
2. 2009-2010 Year-end Results
ASUCLA has been impacted significantly by the economic downturn both national, within
California and on campus. Overall, sales for the Association show a negative variance to last year
of 9% which translates to $6,742,000 less in sales throughout ASUCLA as compared to last year.
This shortfall was even greater as compared to budget. When the budget was prepared last year, it
was expected that the economy would turn around by the second half of 2009-2010. Since then
things have actually become worse on campus with the furlough program and large cuts to the UC
Budget. Sales results show a negative variance to budget of 11% or $8,440,000. Clearly, this has
been a very challenging year for ASUCLA from a sales prospective.
The Association net income results for the year, however, are very positive. Year-end net income
for ASUCLA Services and Enterprises is $576,000. These results are truly outstanding when you
consider the major sales shortfalls. Net income for the year exceeds plan by $246,000 and is
$266,000 ahead of last year’s net results.
These results represent a team effort from top to bottom in the Association beginning with Board
oversight and support and an outstanding level of daily commitments throughout the staff. Faced
with pay cuts and furloughs, reduced managerial numbers and significant negative sales trends, the
entire Association came together to restructure its operating plans, introduce new efficiencies and
control costs which led to very strong year end results.
The Store ended the year down 9.5% or $5,388,000 in sales compared to last year but only saw a
negative impact in contribution of $109,000 compared to last year. Food Service was down
10.6% or $1,555,000 in sales versus last year but only lost $59,000 in contribution as compared to
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Minutes of the August 27, 2010, Regular Meeting
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Approved: September 24, 2010
last year and actually exceeded its 2009-2010 budgeted contribution by $110,000. The Services
and Student Union Divisions both found ways to come very close to plan while savings in A &
SS, Maintenance, Utilities and added Interest Income led to excellent results.
It should be noted that the pay reductions and furlough program played a part in these results and
this was the last year of the S.A.F.E. fee referendum growth. However, these are not the major
factor in the results. A sales shortfall to budget of over 8 million dollars without major operating
adjustments, would normally lead to a net reduction of between $1.5-2 million in bottom line. To
exceed plan under these circumstances is a total team effort with all service areas and employees
playing critical roles in the results.
This year the size of Bookzone department was reduced. Every effort was made to keep as many
titles as possible but Bookzone was faced with a negative contribution of $44,562 for 2008-2009
and it was apparent that some adjustment was necessary. This year the Bookzone, in its new
format, saw a positive Contribution of $19,030. In addition, the added Adidas emblematic area
helped Bearwear results. We would expect that all things would have pointed to lower
emblematic sales this year, but adjusting the floor layout and product assortment including the
Gold Standard product kept Contribution for Bearwear very close to last year.
In the Food Service Division there were two key happenings: The completion of Avenue A and
the closure of the Bombshelter for construction. Avenue A has turned out to perform better than
expected. Avenue A Contribution, (Bruin Buzz, Carls’ Jr, Curbide, and Taco Bell) results
between the last year and this year show an increase of over $120,000. In the case of the plan to
deal with Bombshelter service during construction, the food truck program has been very
successful and has received a great deal of publicity.
A&SS Master Plan—Because of the economic downtrend some phases of the plan were moved up
to this year. Certain areas were restructured as some employees left and did not replace several
career positions as a consequence, saving over $200,000 on an annualized basis.
3. August
August sales trends are positive in many respects although, summer sales trends are often
independent and won’t predict future trends.
Overall though, sales in the Store are very strong versus last year. Most of the positive trend was
in the Computer Store with Bearwear also seeing some initial growth.
Food sales are also showing solid trends. North Campus sales continue to be a major concern.
B. Operational Updates
1. Website
The new website is up and running. You can check it out at www.shop.uclastore.com. It took a
great deal of effort from the entire team to get this site turned over in such a short time frame but
significant savings will be seen with the new platform and management believes we can offer the
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Minutes of the August 27, 2010, Regular Meeting
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Approved: September 24, 2010
same great experience to the customers. Overall, MTW is slightly behind last year in sales but
order size is tracking ahead of last year.
.
2. Store Restructuring
Starting September 1, Store Floor Managers on B-level will be reporting to the Store Operations
Department. This should allow for greater efficiencies in the opening and closing of the Store,
scheduling of staff and consistencies in customer service training.
C. Marketing Initiatives
1. Welcome Week Promotions
ASUCLA Enormous Activities Fair
Monday September 29, 10:00–2:00 p.m.
ASUCLA Benefits U Coolzone Tent, which will include an “It All Comes Back to You” yo-yo
giveaway for answering a brief survey about delivery preferences (email, Facebook, Twitter,etc).
Taste of UCLA Restaurant booths with free food samples, as well as a Computer Store tent.
ASUCLA After Hours Sale-A-Bration
Tuesday, September. 21, 7:00-11:00 p.m.
UCLA Store B-level, will be opened for a special event for students. Students will save 20% off
almost everything storewide. There will also be free game play after 10:00 p.m. at Game On! and
a CEC Sneak Peak in the Grand Ballroom at 11:00 p.m.
ASUCLA Job & Resource Fair
Wednesday, September 22, 11:00-2:00 p.m.-Bruin Plaza
Annual ASUCLA Job Fair expanded to include Core Values messaging related to various
enterprises of the Association.
“It All Comes Back to You” Prize Wheel
Thursday, September 24, 11:00-2:00 p.m. -UCLA Store Patio
Grand Prize Raffle for FREE Textbooks for Fall Quarter (win a chance to enter with spin)
Employee Appreciation Days
September 13 and 14. Employees receive 33% at the UCLA Store.
D. Facilities/Capitals/Construction
1. Court of Sciences Student Center
Construction is ongoing, although management has been informed of a contractor delay.
ASUCLA still believes that it will be open for fall 2011.
2. Global Viewpoint Lounge
This project is close to completion. The LCD monitors are now in place and the existing furniture
has been reconfigured until the new furniture is delivered. Management is moving forward
finalizing the signage and is putting together the marketing materials and a press release.
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Board of Directors
Minutes of the August 27, 2010, Regular Meeting
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Approved: September 24, 2010
3. RX Remodel
Mr. Williams and Ms. Bolton presented the RX remodel. The Services Committee has viewed the
plan and management is moving forward as quickly as possible to complete the project.
E. Campus Partnership and Integration
1. DIA Website
In support of the “Re-Launch” of the Department of Athletics website, the online store offered
visitors free shipping on any order over $75 for four days. Almost half of the customers for that
time period took advantage of the promotion.
2. LuValle / Anderson
The LuValle Store management staff has been working with the student representatives from
Anderson on developing marketing strategies for UCLA Anderson gear for Fall. This is the first
year of the new marketing partnership.
3. UCLA Staff Assembly Picnic
For the week of August 9-13, UCLA Faculty and Staff received a 20% discount on Bearwear at all
UCLA Stores.
F. Board of Directors Priorities
1. SUMPI-Student Union
Meeting will start in September when all committee members return to campus. Mr. Champawat
is compiling some existing fee comparison information and reviewing previous student union
initiatives for review by the committee.
G. Academic Materials
1. Academic Initiatives
The grant application has been completed. ASUCLA worked in conjunction with the College of
Letters and Science and the Freshman Cluster Program. There was a total of 64 applications
submitted from 30 states for the 10 available awards. Seventeen of the applications are from
California. All regions of the country are represented. The Pacific is well represented in
applications from Alaska, Hawaii, and Guam. The UC Regents proposals are UCLA, Merced, and
UC Davis.
The Department will likely make the awards by the second or third week of September.
2. Department of Education Grant
ASUCLA is in the process of considering the preparation of a grant application to test an
electronic book rental delivery system. The Academic Master Plan Team is putting together the
proposal and John Sandbrook is helping develop the campus support and coordination. If
ASUCLA applies and receive this grant, which could be significant, it will allow the Association
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Minutes of the August 27, 2010, Regular Meeting
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to fund a test of what management and the Board believes may be a possible future direction for
delivering academic materials to students.
H. Brand Identity and Messaging
1. Brand Messaging
Management is analyzing different approaches to intensify the ASUCLA brand identity,
communication, and messaging efforts. Mr. Williams is analyzing the current staff resources,
taking into consideration some changes in the marketing staff and licensing support, to see if
additional support is required.
I. Campus Outreach
1. Outreach Committee
The new Chair of the Outreach Committee, Mr. Alfaro, met with Ms. Noh, Mr. Champawat and
Mr. Williams to begin planning for the committee process this year. They discussed the need to
look at the effort from both the marketing outreach perspective but also from the constituency
perspective.
Several efforts in the outreach areas are continuing, including the development of a Graduate
Student specific welcome package.
ASUCLA will be present for the first time at the School of Medicine Student Organization Fair.
ASUCLA was invited as the result of an email sent to the SAO’s. The Association’s participation
was substantial for the first year class at the School of Medicine.
2. Grad Student Outreach
Five departments have contacted ASUCLA to request information to be included in their
Orientation packets to new students, plus several more departments. Graduate Advisors have
indicated that they have sent out ASUCLA Benefits U sign-up information.
J. Social Responsibility
1. Sustainability Initiatives
Target Zero Waste: All of the urinals have been converted to 1gpf. Water consumption will be
monitored to see if there is any impact.
Ms. Bolton and Ms. Noh will submit the August progress report to the UC Sustainable
Foodservices Working Group this week. The report is submitted with UCLA Housing and
Medical Center as a joint report for the campus.
K. Product & Service Innovations
1. Custom Football Jerseys
The Store is planning to have signs up and order forms ready for the scrimmage on August 21.
Two options of the football jersey will be offered. Turnaround will be approximately one week.
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Board of Directors
Minutes of the August 27, 2010, Regular Meeting
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Disclaimers will be in place, informing customers that we are unable to produce a jersey with a
current player's name and number due to NCAA Regulations.
. EXECUTIVE COMMITTEE REPORT
Mr. Jadallah stated that the Committee met on August 17 and discussed the current Stipend Policy. Ms.
Liu also was present to discuss her potential dissertation on ASUCLA.
FINANCE COMMITTEE REPORT
Mr. Reyes stated that the Committee met on August 23 and reviewed the financial statements. The
Committee also discussed and approved the Bruin Day 2011 expenditure which is an action item today.
SERVICES COMMITTEE REPORT
Ms. Liu explained that the Committee met on August 13 and viewed the Rx Remodel plans. There also
was a presentation on the digital signage. The Committee also discussed the potential of adding a creative
service to A-level.
PERSONNEL COMMITTEE REPORT
Mr. Okahana stated that he will give his report in Executive Session.
FINANCE DIRECTOR’S REPORT
July Financial Statements
In the absence of Mr. Delia, Mr. Williams presented the Financial Statements.
Mr. Williams briefly reviewed the July Financial Statements stating that the Store sales were negative
$291,000 to plan, but $337,000 better than last year. The Restaurants were negative to plan by $50,000.
Services was negative by $57,000 primarily due to a Licensing timing issue. The Union was $11,000
better than plan due to added events. Total Gross Income was $387,000 below plan; however they were
$398,000 better than last year.
Mr. Williams explained that the negative variance in A&SS resulted primarily from the accrual of the
Incentive Compensation bonus program which provides for professional staff bonuses in the event of a
positive budget variance in net income at year end. In FY 2009/2010 this bonus amounted to $256,000
such that, were this figure to be removed from Administrative & Support Services expenses, the
Association would have reported a positive budget variance of almost $20,000 for July net income.
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Board of Directors
Minutes of the August 27, 2010, Regular Meeting
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Approved: September 24, 2010
Mr. Williams explained that a portion of this strong net income result was related to the University
Furlough program which resulted in a positive budget variance of $1,345,000 in wages and benefits by
year-end, however strong cost controls in other controllable and allocated expenses combined with several
operational efficiencies also played strong roles in this success.
Maintenance had a good month with lower wages, repairs, and maintenance. Utilities were lower than
plan in all areas due to a lower consumption and a $55,000 utilities credit.
Year to date the Association as a whole reported $576,000 in terms of net income, which was $246,000
greater than planned and $266,000 greater than the prior year despite negative variances in gross income
that exceeded $8,000,000.
Cash Flow for July was such that the ending cash balance was $10,097,000 and cash reserve is still over
$2 million.
August Month-to-Date Preliminary Sales
August Store sales are $298,174 better than planned and $261,101 better than the same period in the prior
year. The majority of this positive variance resulted from increased sales in computer hardware, which
was $406,019 ahead of plan month-to-date.
Based on these results, management estimates that the Store will report a positive variance of about
$29,000 in terms of gross margin by month-end. Mr. Williams reminded the Board that current positive
variances are driven by increased sales of computer hardware which have a comparatively low gross
margin percentage.
BRUIN DAY 2011
UCLA has traditionally held separate admissions yield events for different groups of high school students,
hosted by the College and professional schools, as well as student organizations and campus departments.
These events previously have welcomed prospective students to campus on different dates.
Beginning spring 2011, the campus is planning to combine all yield events into a single, coordinated
program called Bruin Day. The change will give prospective students a greater sense of welcome from
the campus as a whole, and it will provide a more consistent and uniform experience for the students and
their families. Bruin Day will be a critical component of the campus’s effort to bring the best and
brightest students of all backgrounds to UCLA.
The event will be coordinated by the Division of Student Affairs and the Division of Undergraduate
Education. Activities will take place throughout the campus, and the University is encouraging all
academic and student services departments to hold open houses and make their facilities available to
visitors.
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Board of Directors
Minutes of the August 27, 2010, Regular Meeting
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Approved: September 24, 2010
Mr. Weismeyer made a motion that the Finance Committee is recommending that the Associated Students
UCLA Board of Directors approve the expenditure of $10,000 towards funding of Bruin Day 2011. Mr.
Jadallah called for a vote. The motion was approved by a vote of 10 yeas, 0 nays, and 0 abstentions.
EXECUTIVE SESSION
Mr. Lowenstein made a motion, seconded by Mr. Soderberg that the Associated Students UCLA Board of
Directors enter into Executive Session. Mr. Jadallah called for consent. There being no objections, the
motion was approved by unanimous consent.
The Board entered into Executive Session at 1:22 p.m.
Mr. Soderberg made a motion, seconded by Mr. Alfaro that the Associated Students UCLA Board of
Directors adjourn Executive Session. Mr. Jadallah called for consent. There being no objections, the
motion was approved by unanimous consent.
The Board adjourned Executive Session at 2:20 p.m.
Ms. Liu made a motion, seconded by Mr. Reyes that the Associated Students UCLA Board of Directors
approve all actions taken in Executive Session. Mr. Jadallah called for a vote. The motion was approved
by a vote of 7 yeas, 0 nays, and 0 abstentions.
ADJOURNMENT
Ms. Saelua made a motion, seconded by Ms. Liu that the Associated Students UCLA Board of Directors
adjourn the August 27, 2010, Regular Meeting. Mr. Jadallah called for consent. There being no
objections, the meeting was adjourned at 2:21 p.m.
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Pursuant to Bylaw 3, section 3.6(d) of the ASUCLA Board of Directors Bylaws, I have reviewed these
Minutes and hereby attest to their accuracy.
David Lowenstein
Board Secretary and Administrative Representative
Associated Students UCLA
Board of Directors
Minutes of the August 27, 2010, Regular Meeting
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